Ausdrill (ASL)

Perth-based mining and drilling contractor
Ausdrill
cracked the magic $1 billion market capitalisation earlier this year. But since completing a $150 million equity raising to put the company in a position to take on more contracts in April, the stock’s upward climb has been arrested. Despite Ausdrill’s record for translating new capital in extra revenue, the company’s shares have been trading in a band between $3.20 and $3.40 for the past two months. Some of the investor wariness around the stock could be linked to speculation it will buy specialist underground mining contractor Barminco, which recently postponed a $550 million initial public offering. Ausdrill welcomed former Leighton Holdings chief executive Wal King as a director in April, adding to the perception it wants to be in the big league. Another potential acquisition target is West Australian mining and civil contractor Macmahon Holdings.